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StocksMediumUpdated×2•Originally published 4 November 2026•Updated 4 November 2026•
1 min read

Arm Shares Fall After-Hours as AI Sales Guidance Misses High Expectations

Key Facts

1Arm reported EPS of $0.52, beating analyst estimates of $0.48.
2Revenue reached $1.44 billion, up 27.1% year-over-year and exceeding the $1.38 billion estimate.

Arm shares fell in after-hours trading as the company's AI-fueled sales guidance failed to meet high investor expectations for a blowout result. The decline occurred despite Arm reporting second-quarter earnings per share of $0.52, which beat the analyst estimate of $0.48.

Benzinga reported that revenue reached $1.44 billion for the second quarter of 2026, marking a 27.1% increase year-over-year and exceeding the $1.38 billion estimate. However, investor sentiment was pressured by guidance that failed to satisfy the market's high expectations for AI-driven growth.

Latest Updates · 1

  1. Notable·

    Update: Arm expects third-quarter revenue to range between $1.49 billion and $1.59 billion, with annualized contract value reaching approximately $1.79 billion. The company also reached a milestone as shipments of Arm-based chips exceeded 10 billion units in a single quarter, while Arm-based PCs now represent 20% of the global market.